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Case studies

A food manufacturing company based in the UK, with overseas subsidiaries, struggled to insure its food production operation due to its lack of cohesive crisis management plans. Capcon Argen was asked by the company’s insurance broker to review the plans with particular reference to product recall and hazard analysis.

Crisis management: product integrity

It was quickly established that the company had spent the previous two years making strategic acquisitions of smaller manufacturing operations from a number of different countries and most had brought with them their own limited procedures. Furthermore, as most of these companies were on a performance–based earn–out, they were reluctant to identify any sensitive areas, which might be deemed to be loss making.

Capcon Argen therefore applied a ‘clean sheet’ approach to the development of new plans, identifying as it went, key managers with the necessary communication skills to join a crisis management team and worked with them. Working together, the necessary elements of a group-wide recall plan, including effective hazard analysis and self-testing, was established.

With a cohesive and clearly understood plan in place, including an undertaking to review the plans on an annual basis, the insurers not only offered the necessary insurance cover but a contribution to the ongoing risk management budget.

 
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